Canaccord starts Chembio Diagnostics at buy; PT $9

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Canaccord Genuity launched coverage of Chembio Diagnostics (NASDAQ:CEMI) with a “buy” rating and $9 price target. The stock closed at $5.48 on Jan. 3.

“In our opinion, Chembio is an underappreciated player in the attractive $8-billion to $10-billion point-of-care diagnostics space, an area of notable interest for leaders like Abbott, Quidel, Roche and OraSure,” writes analyst Mark Massaro.

“We like Chembio, given its best-in-class test accuracy, unique ability to multiplex and provide rapid quantitative results, and the ‘free call option’ partnerships that Chembio has signed with third parties,” he added.

Mr. Massaro said Chembio's low-cost immuno-assay Dual Path Platform (DPP) has the unique ability to test for up to eight targets at the same time, and delivers easy-to-read quantitative results with best-in-class test accuracy, positioning Chembio to take market share in the point-of-care diagnostics space.

He said Chembio's DPP offers “elite test sensitivity and specificity of 99.8% and 100%, respectively, which has driven some recent competitive wins over larger players in the sector.”

Stephen Kilmer